Principles of Financial Accounting.
24th Edition
ISBN: 9781260158601
Author: Wild
Publisher: MCG
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Chapter 8, Problem 4QS
To determine
To indicate which statement is true or false.
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Which one of these principles is considered for cash disbursement control
Select one:
O a. Print check amount by machine
O b. Same staff approve and make payment
Oc. Reconcile bank statement annually
O d. Rarely compare checks to invoices
rlons to bas od A
M5-4 Matching Cash Receipt Processes to Internal Control Principles
Match each of the following cash receipt activities to the internal control principle to which it best
relates. Enter the appropriate letter in the space provided.
1. A list of checks received in the mail is prepared.
2. Total cash receipts are compared to the amount
on the bank deposit slip.ciep
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A. Establish responsibility
B. Segregate duties
C. Restrict access
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D. Document procedures
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3. A password is required to open the cash register.
4. Price changes at the checkout require a manager's
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5. Cashiers are required to count the cash in their
register at the beginning and end of each shift.
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Management uses a voucher system to help control and monitor cash payments. Which one or more of the four documents listed below are prepared as part of a voucher system of control? a. Purchase order b. Outstanding check c. Invoice d. Voucher
Chapter 8 Solutions
Principles of Financial Accounting.
Ch. 8 - Prob. 1MCQCh. 8 - Prob. 2MCQCh. 8 - Prob. 3MCQCh. 8 - Prob. 4MCQCh. 8 - Prob. 1DQCh. 8 - Prob. 2DQCh. 8 - Prob. 3DQCh. 8 - Prob. 4DQCh. 8 - Prob. 5DQCh. 8 - Prob. 6DQ
Ch. 8 - Which of the following assetsinventory, building,...Ch. 8 - What is a petty cash receipt? Who should sign it?Ch. 8 - Prob. 9DQCh. 8 - Prob. 10DQCh. 8 - Prob. 11DQCh. 8 - Prob. 12DQCh. 8 - Prob. 13DQCh. 8 - Prob. 1QSCh. 8 - COSO internal control components C1 COSO lists...Ch. 8 - Prob. 3QSCh. 8 - Prob. 4QSCh. 8 - Prob. 5QSCh. 8 - Prob. 6QSCh. 8 - Prob. 7QSCh. 8 - Prob. 8QSCh. 8 - Prob. 9QSCh. 8 - Prob. 10QSCh. 8 - Prob. 11QSCh. 8 - Prob. 1ECh. 8 - Prob. 2ECh. 8 - Prob. 3ECh. 8 - Prob. 4ECh. 8 - Prob. 5ECh. 8 - Prob. 6ECh. 8 - Prob. 7ECh. 8 - Prob. 8ECh. 8 - Prob. 9ECh. 8 - Prob. 10ECh. 8 - Prob. 11ECh. 8 - Prob. 12ECh. 8 - Prob. 13ECh. 8 - Prob. 14ECh. 8 - Prob. 15ECh. 8 - Prob. 16ECh. 8 - Prob. 1APCh. 8 - Prob. 2APCh. 8 - Prob. 3APCh. 8 - Prob. 4APCh. 8 - Prob. 5APCh. 8 - Prob. 1BPCh. 8 - Prob. 2BPCh. 8 - Prob. 3BPCh. 8 - Prob. 4BPCh. 8 - Prob. 8SPCh. 8 - Prob. 1AACh. 8 - Prob. 2AACh. 8 - Prob. 3AACh. 8 - Prob. 1BTNCh. 8 - Prob. 2BTNCh. 8 - Prob. 3BTNCh. 8 - Prob. 4BTNCh. 8 - Review the opening feature of this chapter that...Ch. 8 - Prob. 6BTN
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Similar questions
- Which one of the following documents is used in the control of cash receipts?a. Purchase requisitionsb. Receiving reportsc. Canceled checks from customersd. Bank deposit slipsarrow_forward12. When a petty cash fund is used, which of the following is true? A. Entries that include a credit to the cash account should be recorded at the time the payments from the petty cash fund are made. B. The balance of the petty cash fund should be reported in the statement of financial position as a long-term investment. C. The petty cashier’s summary of petty cash payments serves as a journal entry that is posted to the appropriate general ledger account. D. The reimbursement of the petty cash fund should be credited to the cash account.arrow_forwardPART II — INTERNAL CONTROL OVER CASH RECEIPTS AND DISBURSEMENTS Six internal control principles related to cash transactions are discussed in the textbook. These principles, with code letters, are: CodeInternal Control Principle AEstablishment of responsibility BSegregation of duties CDocumentation procedures DPhysical controls EIndependent internal verification FHuman resource controls Instructions: Match the above principles to the following applications related to cash receipts and cash disbursements by placing the code in the space provided. Each code letter can be used once, more than once, or not at all. ____ 1.The duties of receiving and recording cash should be assigned to different individuals. ____ 2.Daily cash counts should be made by cashier department supervisors. ____ 3.Employees should be required to take vacations. ____ 4.Cash register tapes should be used for over-the-counter receipts. ____…arrow_forward
- A cash book is used to record ____________ Select one: a. all cash and credit sales b. all receipts and payments of cash c. all cash receipts only d. all cash payments onlyarrow_forwardWhich of the following are characteristics of an effective control of cash disbursements?I. Requiring all checks to be pre-numberedII. Requiring all checks to be signed by one person and countersigned by anotherIII. Requiring approved supporting documents for each check issuedIV. Requiring disbursements to be done in cash from daily receipts prior to making bank deposits to minimize handling of cash a. I, II and III b. I, III and IV c. I and II d. II, III and IVarrow_forwardWhich of the following items on a cash reconciliation would require a journal entry by the company? O Bank error Deposit in transit ONSF check An outstanding checkarrow_forward
- A minimum cash balance required by a bank is called a.a compensating balance b.an EFT c.cash in bank d.a cash equivalentarrow_forwardCalculator Entries are made to the petty cash account when Oa. replenishing the petty cash fund Ob. Ob. recording shortages in the fund Oc. establishing the fund Od. making payments out of the fundarrow_forwardThe preparation of monthly bank account reconciliations is an internal control in place to detect misstatements in cash. Question 46 options: True Falsearrow_forward
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